Fox Q2 Earnings: Revenue And EPS Beat, Fall Sports Schedule and Election Cycle Drove Performance, Plans New Streaming Service

Zinger Key Points

Fox Corp's Q2 revenue jumped 20% to $5.08B, beating estimates, as strong ad growth and sports boosted earnings to $0.96 per share.
Fox announced a new direct-to-consumer streaming service for 2025 and repurchased $250M in stock, with $900M left in its buyback plan.

On Tuesday, Fox Corp FOXA FOX reported fiscal second-quarter 2025 revenues of $5.08 billion, up from $4.23 billion a year ago, beating the analyst consensus estimate of $4.85 billion.

Adjusted net income was $442 million, or $0.96 per share, beating the analyst consensus estimate of $0.67. A year ago, it was up from $165 million or $0.34 per share. The stock gained after the print.

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Cable Network Programming reported quarterly segment revenues of $2.17 billion, an increase of 31% Y/Y. Television reported quarterly segment revenues of $2.96 billion, an increase of 16% Y/Y.

Affiliate fee revenues increased by 6% to $1.90 billion, driven by 9% growth in the Television and 4% increase in Cable Network Programming segments.

Advertising revenues increased 21% to $2.42 billion, primarily due to higher political advertising revenues, the impact of higher MLB postseason ratings and NFL pricing, continued digital growth led by the Tubi AVOD service, and more substantial news ratings and pricing.

During the quarter, the company bought back about $250 million of its Class A common stock; under the current buyback program, about $900 million remains.

Chair and CEO Lachlan Murdoch flagged a compelling fall sports schedule combined with a record-breaking presidential election news cycle, resulting in second-quarter results that reflect the strength and breadth of FOX.

Fox is planning to launch a direct-to-consumer streaming service by the end of the year, CNBC cited Murdoch.

After selling its entertainment assets to Walt Disney Co DIS in 2019, Fox has focused its strategy on sports and news content. CNBC reports that the company has reported stable viewership and advertising revenue, even during the recent ad market slump. Live sports and news remain the highest-rated content in the traditional TV bundle.

Murdoch went to the Oval Office on Monday in solidarity with President Donald Trump, the Hollywood Reporter reports.

Fox Corp stock surged over 72% in the last 12 months.

Price Action: FOXA stock is up 5.16% at $54.63 at the last check on Tuesday.

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